The term "Online trading" usually means a method of performing trading operations on the international currency market, through the services of dealing centers and specialized programs. Online trading involves trading online.
Currently, there are a huge number of different dealing centers that provide their clients with access to the foreign exchange market. These brokers provide their clients with various platforms that allow them to make deals.
Оn our website you will find a list of the main services for online trading. Our website helps you quickly get acquainted with the description of the platforms and compare them with other similar services.
Forex is short for Foreign exchange. In fact, Forex is an interbank market where traders trade currency pairs, spot metals, and CFDs (contracts for difference). In the world, the term Forex has a broad meaning: it refers to any interbank transactions made with foreign currency in general.
Market participants are:
various banks - central and commercial;
dealerships and brokerage offices;
private equity and hedge funds;
Binary options emerged from vanilla (classic) options. However, it is worth understanding what an option is.
An Option is a contract between a seller and a buyer. The first provided an opportunity for the second to buy a product at a fixed price in a certain period of time. However, the buyer was not obliged to purchase the goods. He could have taken advantage of the offer, or he could have ignored it. But the seller had some responsibilities. The main one was the fulfillment of all the nuances stipulated in the contract. That is, he could not change the price during the initially proposed period, or change this period.
A binary option is also a kind of contract, the terms of which are negotiated in advance. The trader receives a profit if the agreed conditions are justified before the end of the specified time. A binary options contract can be entered into on various assets (stocks, commodities, currencies, indices).
In total, there are 4 main subspecies of binary options, which differ in their assets:
Currency. They are also called forex options. Currency pairs are used as an asset, which are the most popular among traders;
Commodity. Provide the ability to trade on the price of various commodity assets. There are more than a hundred of them, but the most common are oil, gold, silver. You can also note sugar, coffee, and more;
Stock. These are options for various securities and stocks. The broker offers stocks of the most famous companies that can be analyzed and predicted the price behavior;
Index options basically contain stock indices. For example, Dow Jones, DAX, S&P 500 and others.